MOF to host meeting with mutual fund market leaders today

Alfred Lee, The China Post

The Ministry of Finance (MOF) will host a meeting with leaders of Taiwan’s investment and trust companies, or the so-called mutual fund companies, to talk about how to revive Taiwan’s stock market.

The meeting immediately following yesterday’s stock market summit conference is evidence of the government’s concern over the plummeting stock market which hit this year’s low yesterday.

The meeting will be presided over by Lin Tzong-yeong, vice finance minister. The heads of the top 15 investment and trust companies are invited to attend today’s meeting.

Prior to the meeting, the investment and trust association held its board directors and supervising directors meeting yesterday, in which they discussed various proposals to present to the meeting with MOF officials.

At the meeting, Yuanta Core Pacific Investment and Trust Company reportedly proposed that the government should allow a wider range of financial products for mutual fund managers to invest on. Currently mutual fund operators are only allowed to operate the funds for investments on securities-related products. The company also hoped the government could relax its ceiling on the use of funds for futures transactions. Currently, a stock fund can only use up to 15 percent of its capital for investments on futures. . China Securities Investment Trust Company proposed to take a more liberal approach for foreign capital to make investments in Taiwan’s listed companies.